House Prices Continue To Grow!

The recent history of the Australian housing market has been characterised by remarkable growth juxtaposed with periods of recalibration and localised corrections. Cities such as Sydney and Melbourne have frequently captured attention with their robust price escalations, but the landscape is far from uniform, with regional disparities in the pace and scale of growth.
The Gold Coast, stands as a sought-after coastal living location, where the stunning beaches meets a burgeoning urban lifestyle. Within this, the narrative of house price growth continues to unfold, captivating the attention of investors, homeowners, and market analysts alike. The Gold Coast's housing market has charted an intriguing course of appreciation, stability, and localized corrections. The Gold Coast reflects a complex interplay of local demand, international interest, and the evolving dynamics of the Australian real estate market. As the Gold Coast retains as a prime destination for residents and investors, the housing market continues to grow.

The below article by Nerida Conisbee, Ray White Group, Chief Economist takes an in-depth look at the continued growth in house prices across Australia.

House Price Growth Continues

Despite a lot more homes on the market compared to last year and interest rates a lot higher, house price growth is continuing across our capital cities. The capital city median is now getting closer to $1 million and is now significantly above the previous peak reached last year. 

The strongest growth market continues to be Perth. Prices are now up almost 10 per cent compared to last year although they did stabilise over the month. The slower markets of Melbourne and Hobart meanwhile are strengthening. Although growth is less than half that of Perth, both cities saw strong increases in October of 0.5 per cent

Meanwhile, the unit market is moving a bit slower, perhaps driven by greater ownership by investors. The median is well in excess of the 2022 peak and prices are overall up over the month, however we did see a slightly decline in the strongest markets of Adelaide, Perth, Brisbane and Darwin. However, Adelaide remains the strongest market for units on a year-on-year basis, while Hobart, a city that has too few units, saw the biggest jump over the month. 

Price growth is expected to continue for the remainder of the year. Although we may see a Melbourne Cup rate rise, a lack of properties continues to be a challenge for buyers. We saw a jump in listings in late winter however this has failed to continue and spring has been far slower than expected for properties coming to market. In addition, potential new home buyers are being pushed into the established home market and strong rental increases are making renting far less attractive.

Nerida Conisbee,
Ray White Group
Chief Economist